Pakistan’s Cabinet, the final authority on resuming trade with India, reversed a decision by a government economic committee on Wednesday to import cotton and sugar from the neighbouring country.
The Cabinet, headed by Prime Minister Imran Khan, linked the resumption of trade with the restoration of autonomy to the region of Kashmir, interior minister Shaikh Rashid Ahmed said. Pakistan downgraded diplomatic relations and suspended bilateral trade with India in August 2019 after New Delhi revoked the autonomy for its part of the disputed territory.
The decision to start imports, aimed at addressing shortages and stabilizing prices in Pakistan, was criticized by analysts and opposition parties as a compromise on Kashmir.
The resumption of trade was seen as another sign of thawing relations between the two rivals. The nuclear-armed neighbours surprised the world last month with a rare joint commitment to respect a 2003 cease-fire agreement along a disputed border that has seen wars and regular gunfire.
The India-Pakistan cease-fire marked a milestone in secret talks brokered by the UAE, Bloomberg reported earlier this month.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU